When the world is in such a difficult situation as now, when borders are closed, shops are closed, people are sitting at home and demand is falling for literally everything, this could not but affect smartphone manufacturers. As a result, we got a predictable drop in demand, which became one of the factors that even changed the traditional top three in sales in some countries. But was the impact of the coronavirus on the industry so great or did other factors play a role, which were also lacking this year? One drop in oil prices is worth it, which has greatly affected the economies of some large countries, which traditionally provided good sales. This time we will talk about this using the example of a relatively stable Europe.
Smartphones have ceased to be sold due to the coronavirus.
How much have smratphone sales changed during the coronavirus period
Global smartphone sales fell in the first quarter of this year, and this is hardly surprising. The drop in sales was caused by several factors, including the COVID-19 coronavirus pandemic. In fact, the impact of the coronavirus was explored in a recent study that covered the smartphone markets in Europe and France.
Counterpoint Research Institute has published an article on new research on the smartphone market in the first quarter of 2020. It was already known that the global smartphone market is in crisis, as indicated in a previous study. Analysts noted that 275 million units were sold globally, down 17% from the corresponding quarter a year earlier.
A new study from the Counterpoint Research Institute provides much more accurate data on the European market, as well as on the situation in particular in France. Thus, we learned that the smartphone market in France decreased by 9% versus 13% in Germany and 21% in Italy. The decline in sales in these countries is above the European average -7%
Who sells the most smartphones
The traditional top 3 smartphone manufacturers have retained their positions in the European market, with Samsung confidently leading, ahead of Apple and Huawei. An interesting situation developed in France when Huawei lost ground more than others and Xiaomi moved it from third place. Although, Huawei still shows generally good results in its home market – in China. According to Peter Richardson, who was co-director of Counterpoint's research, sales Huawei in France declined 43 percent in the first quarter compared to last year. The reason for the drop in sales was predictably the imposition of US sanctions against the Chinese company.
Falling sales and TOP-3 in different European markets. It is interesting that in Russia it is still in first place Huawei.
Most of all from the drop in sales Huawei benefited Xiaomi, which, apparently, “picked up” its customers and, among other things, due to this, ensured itself a sales growth of 145 percent at once. This led to the fact that Xiaomi immediately captured 11 percent of the market. As a result, as reported in the previous report, Xiaomi is the only company that has secured sales growth in the first quarter of 2020.
Interestingly, many companies do not recognize the decline in sales as something extraordinary and try to maintain a happy expression. The 7% drop in sales really doesn't seem fantastic, but it's tens of millions of smartphones and billions of dollars in market volume.
How smartphones were sold in the first quarter
At the same time, the fall in sales against the background of the fourth quarter in the European market was as much as 23 percent. Such a drop seems to be more significant, but it is not very logical to compare these two quarters. Yes, they go sequentially, but seasonality plays an important role here. In the fourth quarter, traditionally higher demand for everything. By the end of the year, people buy a lot of gifts and are generally more willing to spend money.
Comparison with the same period last year seems much more logical due to the absence of seasonal factors. However, many people think that the coronavirus led to just such a drop in sales, and not a relatively small one of “only” seven percent.
Users do not use smartphones less. They just bought them less often.
The companies, in their own defense, say that the fall happened precisely because of the pandemic, as if ignoring the fact that there is a serious oversaturation of the market with smartphones. Yes, everyone needs them, but it is wrong to say that the fall is caused only by epidemiological factors.
Impact of coronavirus on smartphone sales
Nevertheless, a drop in demand in itself would hardly lead to a decrease in the number of sales, but would simply give a slightly smaller growth, but it certainly would. Other factors, such as a drop in oil prices, would also not have a significant impact on sales volumes. You ask, what about the financial crisis? Of course, he had the most serious impact. But it is mostly caused by the pandemic.
People began to sit at home and they simply did not need new phones, and given the massive layoffs at large European factories, they simply had nothing to buy new devices. In addition, stores were closed, and not everyone is ready to buy online. It is possible that it was against this background that it was able to increase its sales Xiaomi, which has always relied heavily on remote sales.
And so it turns out that the new coronavirus, which literally paralyzed society, had the greatest impact on the drop in gadget sales.